OpenAI ends exclusive partnership with Microsoft, caps revenue share payments
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The news: OpenAI and Microsoft announced a reset of their partnership on Monday, which will allow the AI startup to work with customers across all cloud providers and will cap the amount of revenue it has to share with Microsoft through 2030.
The context: In a joint statement shared by the companies on Monday, the new agreement will see Microsoft maintain its licence to OpenAI IP for models and products until 2032, but Microsoft’s licence will now be non-exclusive.
Microsoft will remain OpenAI’s primary cloud partner with the right ship new OpenAI products first, but OpenAI will be able to serve all of its products to customers across any cloud provider.
Microsoft will no longer pay a revenue share to OpenAI. Revenue share payments from OpenAI to Microsoft will continue through 2030 at the same percentage as today but this will be subject to a total cap.
While Microsoft’s partnership was pivotal to OpenAI’s early ascent amid the AI boom, the updates will allow OpenAI to begin pursuing deals with other cloud-computing players like Amazon.
“The greater predictability in the amended agreement strengthens our joint ability to build and operate AI platforms at scale while providing both companies the flexibility to pursue new opportunities,” the companies said.
At one point in 2025, the relationship between OpenAI and Microsoft became so negative OpenAI was considering approaching antitrust regulators to free itself from the contract.
The source: OpenAI Microsoft statement
